Autumn Statement: Energy price cap increase dampens Hunt’s ‘tax cuts’ as he denies pre-election handout – live

Chancellor insists public spending freeze in autumn statement will not result in worse public services

Autumn budget 2023: Key announcements from Jeremy Hunt's statement

Energy bills will rise again in a blow to millions, as analysts warned that the tax cuts unveiled in chancellor Jeremy Hunt’s autumn statement would be “dwarfed” by other tax rises already in motion.

Experts lamented that ministers had “missed the opportunity” to announce extra support for households in desperate need this winter, as Ofgem announced its energy price cap would rise by 5 per cent in January, adding £94 to a typical gas and electricity bill.

Mr Hunt defended tax cuts that will leave public services – already buckling after years of austerity – facing what economists called an “implausible” spending squeeze.

The Institute for Fiscal Studies warned Britain was on course for drastic public-sector cuts even more “painful” than the austerity of the 2010s.

The Resolution Foundation said the national insurance cuts were “dwarfed by tax rises already under way”, set to make households an average of £1,400 poorer. The think-tank also criticised the chancellor’s public spending freeze, asking: “What's the plan here? Abolish the criminal justice system and public transport maybe?”

Key Points

• Jeremy Hunt ‘missed opportunity’ to ease energy bill increases
• Cuts even more painful than austerity era on way, say economists
• Households ‘will be £1,200 worse off' despite cuts in autumn statement
• ‘What’s the plan here?’: Hunt’s tax plans ‘risk completely implausible’ public spending cuts
• Economy to grow just 0.6% as OBR downgrades forecasts
• Recap: Taxes cut, pensions triple locked and benefits at threat in autumn statement

[22 November 2023 12:31 · Matt Mathers]

Starmer hits out at claim statement will ‘turbo charge’ economy

Keir Starmer has hit out at Jeremy Hunt’s claim his autumn statement will “turbo charge” economic growth, Kate Devlin reports.

The Labour leader slammed high NHS waiting lists, which he said were holding the country back.

AT PMQs he asked Rishi Sunak how if a worker has “to wait a year for an operation … are they supposed to grow the economy?”

He also condemned the high numbers waiting for mental health care.

This includes 200,000 children with some waiting nearly two years to be seen.

[22 November 2023 12:37 · Matt Mathers]

‘He’s through the looking glass this one'

Starmer says increased waiting lists are not evidence of the government “getting things done”, as Sunak claimed at the end of his last answer.

“He’s through the looking glass this one,” he adds.

The Labour leader then reminds MPs that Sunak did not answer how many people were on mental health waiting lists.

He says Sunak knows the answer but doesn’t want to give it - “1.2 million, 200,000 are children”.

Starmer adds some of those children have been waiting two years.

[22 November 2023 12:38 · Matt Mathers]

Hunt begins autumn statement

Chancellor Jeremy Hunt said the government’s plan for the British economy is “working” but added that the “work is not done”, as he began his autumn statement.

[22 November 2023 12:40 · Matt Mathers]

Our plan is working, claims Hunt – who starts with joke about his wife

Jeremy Hunt started his autumn statement by claiming: “Our plan for the British economy is working, but the work is not done”, Adam Forrest reports.

“We have supported families with rising bills, cut borrowing and halved inflation. The economy has grown. Real incomes have risen,” said the chancellor.

He said the Conservatives “reduce debt, cut taxes and reward work” and said his party “know that a dynamic economy depends less on the decisions and diktats of ministers than on the energy and enterprise of the British people”.

Mr Hunt also started his speech with a joke. “It’s my wife’s birthday. Unlike me, she’s looking younger every year.”

(PA)

[22 November 2023 12:43 · Matt Mathers]

Hunt: We’ll reduce debt, cut taxes and reward work

The government will “reduce debt, cut taxes and reward work”, the Chancellor said.

Jeremy Hunt told the Commons: “In today’s autumn statement for growth our choice is not big government, high spending and high tax because we know that leads to less growth, not more.

“Instead we reduce debt, cut taxes and reward work.

“We deliver world class education. We build domestic sustainable energy.

“And we back British business with 110 growth measures – don’t worry, I’m not going to go through them all – which remove planning red tape, speed up access to the national grid, support entrepreneurs raising capital, get behind our fastest growing industries, unlock foreign direct investment, boost productivity, reform welfare, level up opportunity to every corner of the country, and cut business taxes.”

[22 November 2023 12:44 · Matt Mathers]

Hunt expresses horror at attack on Israeli citizens

Chancellor Jeremy Hunt expressed his “horror” at the attack on Israeli citizens on October and the subsequent loss of life on both sides.

He said: “I am deeply concerned about the rise of antisemitism in our country, so I am announcing up to £7 million over the next three years for organisations like the Holocaust Educational Trust to tackle antisemitism in schools and universities.

“I will also repeat the £3 million uplift to the Community Security Trust.

“When it comes to antisemitism and all forms of racism, we must never allow the clock to be turned back.”

[22 November 2023 12:45 · Matt Mathers]

In-work benefits rise with inflation at 6.7 per cent

Jeremy Hunt also confirmed in-work benefits will rise in line with September’s inflation figure of 6.7 per cent, Archie Mitchell reports.

The chancellor had considered using the lower 4.6 per cent inflation figure from October to uplift inflation, in a bid to save £3bn.

But on Wednesday Mr Hunt confirmed those claiming the benefits would see their rate increased in line with September’s higher figure as usual.

Mr Hunt said it would represent an increase of £470 for 5.5 million households next year, describing it as "vital support to those on the very lowest incomes".

[22 November 2023 12:46 · Matt Mathers]

Triple lock saved

The chancellor announced that the state pension will rise by 8.5 per cent from April, in line with the so-called ‘triple-lock’, Kate Devlin reports.

The pledge was brought in by David Cameron when he was prime minister.  It means the rate is increased by average earnings, inflation or 2.5 per cent – whichever is highest.

The chancellor had considered “tweaking” the formula, to strip out bonuses, a move that would have allowed him to increase pensions by 7.8 per cent.

But that prompted negative headlines and an internal row within the Conservative party.

[22 November 2023 12:48 · Matt Mathers]

Jeremy Hunt freezes alcohol duty

The chancellor has announced a freeze on alcohol duty, Archie Mitchell reports.

The duty on many spirits and wines rose in August in the first increase since 2020 – but the chancellor has now frozen the rate under pressure from the hospitality industry.

It will remain frozen until next August and Jeremy Hunt also reaffirmed the government’s so-called Brexit pubs guarantee, meaning pints in pubs are taxed less than those bought from shops.

[22 November 2023 12:52 · Matt Mathers]

UK on target to get debt falling, Hunt says

The chancellor said the UK would meet its goal of having debt falling as a percentage of GDP.

Jeremy Hunt told the Commons that the economy had “outperformed expectations” since last year’s autumn statement, adding: “We therefore meet our fiscal rule to have underlying debt falling as a percentage of GDP in the final year of the forecast, with double the headroom compared to the OBR’s March forecast.

“And we continue to have the second lowest government debt in the G7 – lower than the United States, Canada, France, Italy or Japan.”

(PA)